China Accelerates New Energy Move

Policy Initiatives To Trigger Massive Growth Of Renewable Energy In China

Gaurav Sharma, May 21, 2019 (Forbes)

“New policy initiatives in China will trigger an increase in the consumption of renewable energy and lower curtailment rates, while at the same time also create challenges for the country's coal-fired power producers, who will see utilization declines…[The final China National Energy Administration renewable portfolio standard (RPS)] will become effective in 2020 for five years…[It sets the 2030 foundational share of non-fossil fuels at] 20% of primary energy consumption…[It was 14.3% in 2018, which was almost the] 15% set in [China’s] 13th five-year plan for 2016-2020…

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China is already the world's largest wind power producer, with 211,392MW of installed capacity, more than all of the European Union combined…[C]urtailment rates for wind and solar power dropped to 7% and 3% in 2018 on supportive government policies, and should in all likelihood fall further as consistency increases across Chinese provinces in their dispatch of renewable energy…The other side of China's evolving energy mix is that as renewables thrive, the new policy creates challenges for coal-fired power producers, as intensifying competition from renewable energy companies will result in declining utilization, and ultimately lower average tariffs.” click here for more

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